2025 IPO Boom Pushes Fundraising Past Rs.1.6 Lakh Crore With More Issues Ahead
India’s IPO Market Sets New Record in 2025 as Fundraising Crosses ₹1.6 Lakh Crore
India’s booming equity markets have propelled 2025 into a record-breaking IPO year, with total fundraising now exceeding ₹1.6 lakh crore, surpassing the previous high of ₹1.59 lakh crore set in 2024. With a full month still remaining and more issues lined up, fundraising may well push toward an unprecedented ₹2 lakh crore, cementing 2025 as the strongest listing year in India’s market history.
The surge intensified after Meesho Ltd, Aequs Ltd and Vidya Wires Ltd announced their public issues scheduled for next month. Meesho aims to mobilise ₹5,421 crore, Aequs Ltd is expected to raise ₹921 crore, while Vidya Wires will look to collect around ₹300 crore. Their combined contribution helped push the year’s tally to new heights.
What makes the 2025 IPO boom particularly striking is the timing. Nearly half of the entire year’s fundraising has taken place since September, driven by improving market sentiment, steady liquidity and strong institutional participation.
A Moneycontrol report highlighted that at least ten more companies are preparing to launch IPOs worth ₹25,000 crore in the coming weeks. If all issues materialise before year-end, the 2025 figure could climb close to ₹2 lakh crore, a milestone not previously seen in India’s primary markets.
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While fundraising has soared, 2025 has also emerged as an exceptional year for investor exits, particularly through offer for sale (OFS) mechanisms.
Promoters, private equity (PE) firms and venture capital (VC) funds have offloaded shares worth over ₹1 lakh crore this year. The number is already higher than 2024, when OFS sales stood at ₹95,300 crore. Fresh issues, by comparison, stood much lower.
Data from Prime Database highlights a significant long-term trend:
Between 2021 and 2025, Indian companies raised ₹5.4 lakh crore via IPOs.
Of this, ₹3.37 lakh crore, or nearly two-thirds, came solely from OFS exits.
Fresh capital raised during the same period was ₹2.03 lakh crore, roughly 60% of OFS volumes.
This dominance of OFS shows that India’s IPO market continues to serve as a key exit route for investors, especially PE and VC funds that backed companies during their high-growth years.
Even with the fundraising frenzy, retail investors are showing signs of caution. The primary reason: listing-day returns have weakened sharply.
Average IPO gains have dropped to 9% in 2025, down from 29–30% in 2023 and 2024.
Among the 91 listings so far this year, only a handful have delivered gains above 50%.
Many new listings slipped into negative territory within three to six months.
This mismatch between soaring fundraising and muted post-listing performance has emerged as a key concern for retail investors, who typically chase high returns from IPOs.
Market watchers believe the moderation reflects rich valuations, heavy supply, and tighter scrutiny of IPO filings, forcing companies to price their issues more conservatively.
The Securities and Exchange Board of India (SEBI) has taken note of these shifts in market behaviour. To ensure better transparency and governance, SEBI has tightened rules around:
Anchor investor lock-in periods
Promoter stock option disclosures
Due diligence and accounting quality
IPO document scrutiny
Analysts say that enhanced regulatory oversight is crucial at a time when India is seeing rapid growth in its primary markets and an influx of new-age tech startups seeking listings.
A recent CITI report placed India fourth globally in IPO fundraising this year, behind only:
United States – $53 billion
Hong Kong – $23.4 billion
China – $16.2 billion
India’s performance stands out at a time when global IPO markets remain uneven due to geopolitical uncertainty and inflation concerns.
Foreign institutional investors (FIIs) have been net sellers in the secondary market, offloading nearly $24 billion worth of shares in 2025. Yet, interestingly, their confidence in new listings remains intact.
FIIs have pumped $7.55 billion into Indian IPOs this year, indicating strong belief in the long-term India growth story. High-quality issues such as PhysicsWallah, Billionbrain Garage Ventures (Groww parent) and Pine Labs have added to the momentum.
With more than a month to go and a robust pipeline of late-season listings, 2025 is poised to become India’s biggest-ever IPO year, not just in absolute fundraising but also in the scale of promoter and investor exits.
While retail investors remain cautious about listing gains, overall market confidence—both domestic and global—continues to fuel India’s rise as one of the world’s most vibrant IPO destinations.
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